An FMV (Fair Market Value) lease is a lease that does not define a fixed purchase price at the end of the lease term. Instead, the vehicle may be purchased for the fair marketing value at the end of the term. Fair market value is defined as the price of a piece of equipment if the equipment was sold at an “arm’s length,” between a willing buyer and a willing seller under similar terms and conditions.

With an FMV lease, the vehicle or equipment is owned by Trans Lease, and mileage caps may apply. FMV leases are considered operating leases.

Benefits of FMV Leases for Commercial Vehicles

  • Fixed monthly payments
  • Flexible lease structure
  • Option to purchase equipment at end of term
  • No requirement to purchase, allowing lessees to upgrade assets
  • Tax advantages for lessee
  • Avoids taking on large debts

FMV leases are a popular option for those businesses that may need to upgrade their equipment or assets frequently, while still enjoying the benefits of ownership.

If you no longer need or want the equipment, you may return the equipment to Trans Lease, where we will sell the equipment to a third party. If the sale nets an excess of what you owed, you will be paid that amount. If the sale is for less than what was owed, you will pay Trans Lease the difference as an additional payment.

Frequently Asked Questions

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